ABSTRACT
The European Union has issued three Directives on the Prevention of the Use of the Financial System for the Purpose of Money Laundering. In June 1991 the European Parliament and Council adopted the First European Directive on Prevention of the Use of the Financial System for the Purpose of Money Laundering. This first Directive was confined to credit and financial institutions as they were considered to be the most vulnerable to being used by money launderers, although member states were encouraged to extend the requirements to other industries/sectors where there was considered to be a risk of them handling money from criminals. The implementation of the Second Directive was effected in the United Kingdom by the Proceeds of Crime Act 2002 and the Money Laundering Regulations 2003. The general view is that the Third Directive must be given an opportunity to settle down and be fully implemented across all member states.
